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How to Monetize APIs with Azure API Management

Different tools are available to help companies and organizations develop the best use of intellectual property. At the same time, these tools ensure monetization takes the right course to benefit a company. API management applies the necessary security measures to ensure a companyu2019s data stays uncompromised.

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How to Monetize APIs with Azure API Management

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  1. How to Monetize APIs with Azure API Management SUMMARY: Different tools are available to help companies and organizations develop the best use of intellectual property. At the same time, these tools ensure monetization takes the right course to benefit a company. API management applies the necessary security measures to ensure a company’s data stays uncompromised. Text Today, Application Programming Interfaces (APIs) are useful in many ways. They are tools for connecting software, but that’s not all. APIs are also products. They are primal to the technical side of all organizations, thus brilliant tools to have in a company or organization. Some organizations treat APIs as pieces of code for task performance. However, companies that see APIs as means to earn money are in a better place. First off, what is Azure API management? API management is a centralized way to use integration assets. Also, sharing documentation and safeguarding a company’s services falls under API management. Monetization of APIs Modern web APIs are a backbone for the digital economy. Third party access and use a company’s intellectual property to generate revenue by: • Packaging intellectual property data algorithms or data • Offering ways for others to discover and consume intellectual property in a smooth manner

  2. • Offering suitable ways for people to pay for usage (directly or indirectly) Azure API management enables startups and well-established organizations to transform digitally. APIs are an excellent way to realize business models. Still, they provide an easy and cost-effective way to market, adopt, consume and scale intellectual property. So, how do you develop a sound monetization strategy? Developing Monetization Strategies Monetization means converting a product or service into money. In such a situation, companies monetize API value. The categories of API monetization strategies include: • Free Monetization • Consumer pays • Consumer gets paid • Indirect monetization Monetization strategies are the responsibility of the API provider and should meet all the customers’ needs. Steps on Implementing Azure API Management Strategies Understanding Customers Evaluate the entire API customer journey. Certain stages allow for proper analysis to see if the service suits the customer. Firstly, allow the customer to try out the API without charging them. Then, allow for testing by providing sufficient access to API. Also, enable consumers to increase API usage in relation to increased demand from users. Quantify the Total Cost of API Ownership When quantifying the cost of API ownership, consider the following: The Cost of Customer Acquisition (COCA) This cost includes the cost of sales, marketing and onboarding. Factors here include seamless integration with existing payment systems and documentation. Engineering Costs

  3. Engineering costs include human resources. These resources build, operate, test, and maintain the API for as long as it’s in use. Infrastructure Costs These costs include aspects that help the API to function. They include costs of computing, networking and storage. Usually, cloud platforms are better because they are more affordable and in line with API usage. Conduct Market Research Market analysis is vital to find out a few details. Firstly, do adequate research about the market. It is vital to know how the competitors are. Above that, analyze the competition’s monetization strategies. This will help in figuring out how you’ll apply monetization for APIs. Finally, it’s vital to find out what features they offer with APIs. These features include non- functional and functional. Design the Revenue Model The revenue model should have limits on services provided. It should also outline the exact price for each API call. Set frequencies for calls to regulate how much consumers can use within a specific period. For example, setting a cap on API usage. The monetization strategy should change depending on the consumers’ needs. Always allow room for changes and modifications so that consumers can buy your services. All companies are different and should devise strategies based on their API management tasks.

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